FTC’s 'click-to-cancel' rule enforcement delayed again

The Federal Trade Commission said it is again deferring enforcement of its "click-to-cancel" proposal that is part of its Negative Option Rule. 

What is FTC’s Negative Option Rule?

The backstory:

The "click-to-cancel" proposal is part of the FTC’s ongoing review of its 1973 Negative Option Rule, which the agency uses to combat unfair or deceptive practices related to subscriptions, memberships and other recurring-payment programs.

Big picture view:

The "click-to-cancel" proposal is being implemented to make canceling a subscription as easy as it is to sign up for one. 

For example, if you can sign up online, you must be able to cancel on the same website, in the same number of steps, the agency said. 

Dig deeper:

The process of canceling some subscription services has become one of the top complaints filed with the FTC in recent years, according to FOX Business. 

The rule was "calculated to combat unfair or deceptive business practices, including recurring charges for products or services consumers do not want and cannot cancel without undue difficulty."

‘Click-to-cancel’ enforcement

The backstory:

The FTC was set to begin enforcing its "click-to-cancel" rule this week on May 14, after an original implementation date of January 19, 2025.

Big picture view:

Enforcing the rule would prohibit companies from making it any more difficult for consumers to cancel than it was to sign up. 

But the FTC said last week that it agreed companies needed more time to come into compliance with the rule, giving them another 60 days. 

Timeline:

Starting July 14, 2025, companies must now be in compliance with the "click-to-cancel" rule, the FTC said. 

FTC bans ‘junk fees’

Meanwhile:

A final rule banning "junk fees" for live event tickets and hotels was announced by the Federal Trade Commission on Monday. 

READ MORE: Ban on 'junk fees' for live event tickets, hotels goes into effect: What to know